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Aer Lingus Aims to Join Alliance

28 January 2010

Aer Lingus Group Plc aims to join a global airline alliance to add destinations and attract more passengers after dropping its “no-frills” business model, Chief Executive Officer Christoph Mueller said in an interview.

Aer Lingus pulled out of the Oneworld alliance, which includes British Airways Plc, in 2006, saying the revenue benefits weren’t sufficient. The carrier continues to codeshare with BA, meaning the pair sell tickets on each other’s flights, and has similar pacts with Air France’s Dutch unit KLM and UAL Corp.’s United Airlines, members of the SkyTeam and Star groups.

Ryanair Holdings Plc, Aer Lingus’s biggest competitor and a 29 percent shareholder after two failed takeover bids, doesn’t have alliances with other airlines and operates its routes as point-to-point services without connections to other flights. The strategy has made it Europe’s biggest discount carrier.

source: BusinessWeek.com

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